
 

**** Trade treaties [Interval: first active trading day after treaty]
{
	
	clear 
		
		use "Data/DawesBond_European_AAO2023(RFS)"
			 
				
		
		
		* Anglo-German  treaty (1934-11-01)
		
		preserve 
				keep if tin(31oct1934,02nov1934)
				
 
				
				foreach x in london  paris   amsterdam zurich{
				
				egen pre_Treaty_`x'_p= mean(ytm_`x'_lastavail) if tin(31oct1934,31oct1934)
				egen pre_Treaty_`x' = mean(pre_Treaty_`x'_p)
				egen post_Treaty_`x'= mean(ytm_`x'_lastavail) if tin(2nov1934,7nov1934)
				gen D_`x'=post_Treaty_`x'-pre_Treaty_`x'
				
				}
				
				keep if tin(2nov1934,2nov1934)
				
 				
				gen treatyevent=1
				
				 save 	"Temp/anglotreaty" ,replace 
		restore 
		
		
		
		* Franco-German agreement on Commercial Payments of (28 July 1934),   but Economist calls it already a week early (21 of July)
		
 		
		

		   
		preserve 		
			
				keep if tin(19jul1934,30aug1934)
				
 
				
				
				foreach x in london  paris   amsterdam zurich  {
				
				egen pre_Treaty_`x'_p= mean(ytm_`x'_lastavail) if tin(21jul1934,21jul1934)
				egen pre_Treaty_`x' = mean(pre_Treaty_`x'_p)				
				egen post_Treaty_`x'= mean(ytm_`x'_lastavail) if tin(23jul1934,23jul1934)
				gen D_`x'=post_Treaty_`x'-pre_Treaty_`x'
				}
				 
 				
				keep if tin(23jul1934,23jul1934)
				
 				
				gen treatyevent=2
 		
				 save 	"Temp/frenchtreaty" ,replace 

		restore 
		
	
		
		
		* Dutch-German agreement (September 21, 1934,) additional protocoll signed lated (October 13th)
		
		
		 		 

		preserve 		
					 
			keep if tin(19sep1934,30sep1934)
				
 
				
				
				foreach x in   london paris   amsterdam zurich  {
				
				egen pre_Treaty_`x'_p= mean(ytm_`x'_lastavail) if tin(20sep1934,20sep1934)
				egen pre_Treaty_`x' = mean(pre_Treaty_`x'_p)
				egen post_Treaty_`x'= mean(ytm_`x'_lastavail) if tin(21sep1934,21sep1934)
				gen D_`x'=post_Treaty_`x'-pre_Treaty_`x'
				}
				
				
  

				keep if tin(21sep1934,21sep1934)
				
				
 				
				gen treatyevent=3
 		
				 save 	"Temp/dutchtreaty" ,replace 

		
		restore 

		
		*Swiss German-Agreement ( July 26, 1934) // take same day into account
		
		   
		 
			preserve 		
			
			keep if tin(19jul1934,20aug1934)
				
 
				
				
				foreach x in london paris amsterdam       zurich{
				
				egen pre_Treaty_`x'_p= mean(ytm_`x'_lastavail) if tin(25jul1934,25jul1934)
				egen pre_Treaty_`x' = mean(pre_Treaty_`x'_p)
				egen post_Treaty_`x'= mean(ytm_`x'_lastavail) if tin(26jul1934,26jul1934)
				gen D_`x'=post_Treaty_`x'-pre_Treaty_`x'
				}
				
				 
								
								
				keep if tin(26jul1934,26jul1934)
				
 				
				gen treatyevent=4
 		
				 save 	"Temp/swisstreaty" ,replace 

		restore 

		
		clear 
		
		use "Temp/frenchtreaty"
		
		append using "Temp/anglotreaty"
		append using "Temp/dutchtreaty"
		append using "Temp/swisstreaty"
		
		
		label var D_london 		"London"
		label var D_paris 		"Paris"
		label var D_amsterdam 	"Amsterdam"
		label var D_zurich		"Zurich"

		
 
		
		 graph bar  D_london D_paris D_amsterdam D_zurich , yscale(r(-3  2)) ylabel(-3(1)2)  blabel(total,format(%9.1f))   ytitle("{stMono:Change in yield to maturity}") over(treatyevent, relabel(1 `" "{stMono:British}"  "{stMono:Treaty}" "' 2 `" "{stMono:French}" "{stMono:Treaty}" "'  3 `" "{stMono:Dutch}"  "{stMono:Treaty}" "' 4 `" "{stMono:Swiss}" "{stMono:Treaty}" "')) bar(1, fcolor(blue)) bar(2, fcolor(red)) bar(3, fcolor(dkorange)) bar(4, fcolor(green)) bgcolor(white)  graphregion(color(white)) legend(c(4)  size(small) pos(6) ring(2)  region(lcolor(none))		order( 1 "London" 2 "Paris" 3 "Amsterdam" 4 "Zurich"))  
		
		
		   		graph export "Output/Figure5b.pdf", replace
}
				
